PJM Interconnection the largest U.S. grid operator will curtail data centers of 50 MW or larger during capacity shortfalls beginning June 2027. The rule follows a first-ever miss: PJMs December 2025 capacity auction came up 6625 MW short of its reliability target and reserve margins are projected short across June 2027 to May 2028.
The constraint on digital-infrastructure real estate has moved from the site to the substation. Being in the interconnection queue is no longer the same as being guaranteed power and the queue itself is now the entitlement.
The regulatory front opened the same week. Oracle sued in Wisconsin to overturn a rule forcing hyperscalers to post hundreds of millions in financial security while ratepayer advocates told FERC its show-cause order fails to allocate data-center network-upgrade costs.
Implications: Land near firm contracted power reprices up; stranded sites without a credible energization path lose value. Underwrite the interconnection date and curtailment tier not just rent and absorption.
Key Takeaways
- In data centers the binding question is no longer can you lease it but can you power it
- Interconnection is the new entitlement and the queue is the gating item
TechCrunch Jul 28 2026 Data centers may face temporary power cuts to prevent blackouts on largest US grid · E&E News POLITICO Jul 2026 PJM proposes data center registry with teeth · Utility Dive Jul 17 2026 FERC fails to shield PJM consumers from data center transmission costs · PJM Inside Lines 2026 PJM Board Directs Action on Resource Adequacy Affordability and Large Loads
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